Is your family really Covered with a sufficient Health and
Life Insurance?
While we all are getting vaccinated on priority, many of us
are still at high risk without getting the two most important Financial vaccinations
ie: Life Insurance and Health Insurance.
Its high time to take cognisance of the fact that everything
has changed, and we need to act as per the changing scenario. Insurance
is not just about Money anymore, It’s about life and death of people; it is
saving lives of families.
Adequate Insurance cover is as important to all of us, as a
PPE Kit is to a Doctor during these times.
All the traditional safety nets have been torn apart by the
pandemic, be it your Financial Plans, Insurance cover or the Health Care
Infrastructure.
Over 60 % population has no Insurance in India. Only a
fraction of population has adequate Insurance.
Family and friends used to help in emergencies, but now many
have been infected or have needy people in their families. Many people have
lost their Jobs or Income too, and everyone is trying to help themselves and
survive.
The costs are so high that You now have no option, but to be
independent with adequate Insurance.
Life, Health and Personal Finances are no more as certain as
it used to be and managing risk and financial planning requires help of
professional Advisors. Health Insurance is no more just a financial cover but a
life-saving tool to get the best possible treatment.
A person with lower sum assured chooses small nursing homes
for treatment and then moves to better hospital and facilities only if his
treatment demands the same. Thus in many cases precious time is wasted and life
is endangered.
Higher Sum Insured includes all features and benefits of the
policy. One should take the highest possible Health cover for all his family
members.
We normally plan to leave our wealth for our family, with
financial planning, however during Covid many people are leaving the families
with multi-generational debts to repay. Insufficient Mediclaim can dig a
unthinkably huge hole in your finances.
Insufficient Insurance is as good as No Insurance. Health
care Inflation is more than double the normal inflation rate. You can expect
Healthcare costs to double in 5 to 6 years; and it will continue going north as
medical technologies, treatments and facilities are improving every day.
Thus a once good Traditional health cover of 5 to 10 Lac is
insufficient and meaningless in today’s context. A day in a good multi-speciality
hospital may cost you upward of 1 Lac a day for isolated ICU and doctor
consultation.
Apart from the general increase in costs today and the
expected inflation in the coming years, the following are some visible trends
during the pandemic:
Entire Families are getting infected, unlike the normal
times when treatments are generally required only for one person in the family
at a time.
There are No Choice of hospitals; Getting a Hospital and the
basic life-saving treatments itself is a big achievement. Earlier one can
choose a less expensive hospital or make choices as per need.
Unlike the first wave of Corona people stay longer in
Hospitals for 30 to 60 days of treatment, this increases the costs
significantly for stay and treatment.
ICU/Ventilator and advanced treatments are common and may be
needed for anyone anytime without notice.
Post Covid complications are uncertain and unknown; The side
effects of vaccinations and Treatments over a period of time is unknown.
The new strain of Covid is not in anybody’s control.
The future impact of infections on co-morbid patients
remains to be seen.
Post infection new Insurance policy/Higher Sum Insured comes
under 3-4 year PED (Pre Existing Disease Exclusion) for Covid and related
diseases. Insurance may also get declined depending on other health conditions.
Thus it is imperative that you have a good cover while you are healthy.
The Grim reality is that a majority of the population in
India is not only insufficiently covered but have no Insurance at all. We fail
to prioritise the need to adequately Insure ourselves, and by the time disaster
strikes it is too late.
Stay Safe, Stay Protected, Use Masks, Maintain Social
Distancing, Wash Hands, Improve your Immunity with Exercise and Nutrition,
Write your Will, Take adequate Health and Life Insurance. Have a review of your
Insurance Portfolio done with your Financial Advisor today and do the best you
can for yourself and your family. Share with your loved ones, ensure all
families are Financially Vaccinated with a good Life and Health Insurance.
There is no Bigger Virus than Fear, There is no Bigger
Action than Vaccination
-
Dr. Ashok Chandran
The Author is a Health Insurance Specialist and can be reached at ashok@ac.co.in or 9821157708.
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